Angola this year is expected to record a slight economic recovery, but continues to have significant macro-economic imbalances, according to a press release published on Wednesday in Washington and drawn up by the mission that recently concluded a 10-day visit to the country.
The mission headed by Brazilian economist Ricardo Velloso estimates that this year the economy will post growth of 1.1% and the balance of payments will improve, due to positive developments in terms of exchange, but added that inflation remains high.
“Despite the sales of foreign currency by the National Bank of Angola increasing, which led foreign reserves to fall to US$14.9 billion in October, the difference between the official exchange rates and black market rates remains high, and the request for currency by commercial banks are not fully satisfied,” the press release said.
The IMF mission in Angola also had preliminary discussions on economic policies and plans for reform outlined by the new government to solve macro-economic imbalances and improve growth prospects, contained in the six-month interim plan, which will run until March 2018.
“The macro-economic imbalances should be faced with determination (…) The interim plan is properly focused on the objectives of intensifying efforts for budgetary consolidation, introducing greater flexibility in the exchange rate and improving governance and the business environment, so as to promote faster growth and economic diversification,” the statement concluded. (macauhub)